The Obamacare medical device tax will go into effect in 2013.
Boston Scientific Co. has warned this tax will lead to research cuts and layoffs. Cook Medical, which makes endovascular therapy items, critical care products, urology, OB-GYN supplies, estimates the new tax will take 55 percent of its profits. They have already canceled a new U.S. plant due to the Obamacare taxes.
Stryker, of Kalamazoo, Mich., announced it will reduce its workforce by 5 percent. Due to Obamacare, Covadien, a New York based surgical supplies makers, announced layoffs of 200 American workers.
Zoll Medical, of Massachusetts, makes defibrillators and employs 1,800 workers, says the medical device tax will cost it $5 to $10 million a year (It’s profits for 2009 were $9.5 million.) CEO Richard Packer says, “Running our company at break even would not be sustainable for us, so we will be forced to look at other options.”
New device development will be retarded; manufacturing in the U.S. will be reduced. Industry-wide job loss is estimated at 43,000 due to the new tax.
Obamacare: lethal to U.S. jobs and patients.